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  • Economy

    Expected BOK rate hike prompts concern over rising interest burdens on households, firms

    Expectations of imminent interest rate hikes by the Bank of Korea (BOK) are adding to pressure on households and businesses already struggling with rising borrowing costs, analysts said Sunday. Lending rates at major banks have continued to climb as BOK Gov. Shin Hyun-song struck a hawkish tone following a Monetary Policy Board meeting on May 28, reinforcing market expectations that the central bank could begin raising rates as early as July. According to banking industry data, fixed-rate mortgage loans offered by the country's five major lenders — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — carried interest rates ranging from 4.39 percent to 7.33 percent as of Friday. The upper end of the range was up 0.33 percentage point from a month earlier, when rates stood between 4.4 percent and 7 percent. It marked the first time since October 2022 that the highest fixed mortgage rate among the five major lenders exceeded 7.3 percent. Personal credit loan rates have also moved higher. As of Friday, interest rates on personal credit loans for top-tier borrowers with one-year maturities ra

    2 MIN READBy Lee Hyo-jin
    Expected BOK rate hike prompts concern over rising interest burdens on households, firms
  • Others

    AI-fueled Samsung affiliates reshape KOSPI market cap rankings

    2 MIN READBy Jun Ji-hye
    AI-fueled Samsung affiliates reshape KOSPI market cap rankings
  • Policy

    Top policymakers vow stern action against speculative FX market activities as won weakens

    2 MIN READBy Yonhap
    Top policymakers vow stern action against speculative FX market activities as won weakens
  • Cryptocurrency

    Bithumb's bitcoin payout blunder results in $1.6 mil. compensation

    2 MIN READBy Lee Hyo-jin
    Bithumb's bitcoin payout blunder results in $1.6 mil. compensation
  • Economy

    S. Korean retail investors sell over $641 bil. in overseas stocks in 1st week of June

    1 MIN READBy Yonhap
    S. Korean retail investors sell over $641 bil. in overseas stocks in 1st week of June
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CEO & Publisher: Oh Young-jinDigital News Email: webmaster@koreatimes.co.krTel: 02-724-2114Online newspaper registration No: 서울,아52844Date of registration: 2020.02.05Masthead: The Korea TimesCopyright © koreatimes.co.kr. All rights reserved.

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Economy

Fears of COVID-19 resurgence push up bio stocks despite KOSPI's fall

A person prepares to get a COVID-19 test in front of a public health center in Seoul, Tuesday. YonhapBy Lee Min-hyungShares of bio and pharmaceutical companies have made a solid recovery amid fears of a resurgence of the coronavirus, despite an overall worsening of stock market sentiment here. The first half of this year was a nightmarish period for players in the biotechnology and pharmaceutical industries, as their stock values plummeted as the intensity of the COVID-19 pandemic waned.Together with reduced public vigilance and government preparation for new variants, escalating fears of a global recession have also resulted in a steep fall in major growth stocks. Bio stocks are representative growth stocks, whose performance remains robust during stock market boom cycles. But their valuation plunges during periods of global financial uncertainty sparked by interest rate hikes.Shares of SK Bioscience reached a record high of around 360,000 won per share in August 2021, but the value sharply dropped to below 100,000 won late last month. But the company achieved an outstanding rebound

Jul 12, 2022By Lee Min-hyung
Fears of COVID-19 resurgence push up bio stocks despite KOSPI's fall
  • South Korea's new COVID-19 cases rise to 2-month high of over 37,000
Economy

Korean currency hits yearly low per dollar on recession fears

Movements of Seoul's stocks and currency are shown on a screen at a Hana Bank dealing room in Seoul, July 12. YonhapThe Korean currency fell to a yearly low against the U.S. dollar Tuesday as investors averted riskier assets amid fears about a global recession.The local currency ended at 1,312.10 won per dollar, down 8.20 won from the previous session.It marked the lowest closing so far this year and also hit the weakest level since July 13, 2009, when the won ended at 1,315 per dollar.The won touched as low as 1,316.40 against the greenback at one point, the lowest since April 30, 2009, in intraday trading.The Korean currency has been under downward pressure against the dollar as demand for the safe haven currency increased on concerns that the Federal Reserve's rapid rate hikes could precipitate an economic recession.The global financial market has been gripped by fears of a global recession, prompting investors to chase the dollar.The U.S. consumer price index for June will be announced Wednesday (U.S. time), with market players expecting U.S. inflation for June probably to have a

Jul 12, 2022
Korean currency hits yearly low per dollar on recession fears
Economy

Korea's first alternative trading system to debut in 2024

Korea Financial Investment Association (KOFIA) Chairman Na Jae-chul speaks during a press conference at its headquarters on Yeouido in Seoul, Tuesday. Courtesy of Korea Financial Investment AssociationBy Lee Min-hyungThe nation's first alternative trading system (ATS) will start operating in 2024 amid hopes for more capital inflow and the stabilization of the local securities market, Korea Financial Investment Association (KOFIA) Chairman Na Jae-chul said, Tuesday. “We plan to receive a preliminary license to operate the system by the end of this year under the goal of starting operations sometime around early 2024,” Na told reporters during a press conference.The ATS is a non-exchange trading platform prevalent in developed capital markets abroad. In Korea, the Korea Exchange has been the sole stock trading authority for over six decades. The industry anticipates that the debut of the first ATS here will reshape the stock market by ending the monopolistic status of the single exchange operator.Na underscored that the establishment of an ATS would help attract more capita

Jul 12, 2022By Lee Min-hyung
Korea's first alternative trading system to debut in 2024
Economy

Looming Musk-Twitter legal battle hammers company shares

A Twitter logo is displayed on a screen at the New York Stock Exchange during morning trading, July 11, in New York City. Shares of Twitter dropped after Elon Musk announced that he is trying to end his $44 billion takeover of the company. Stocks fell during morning trading before the start of earnings season as the market anticipates inflation data due to come out later this week. AFP-YonhapShares of Twitter slid more than 11 percent in the first day of trading after billionaire Elon Musk said that he was abandoning his $44 billion bid for the company and the social media platform vowed to challenge Musk in court to uphold the agreement.Twitter is now preparing to sue Musk in Delaware where the company is incorporated. While the outcome is uncertain, both sides are preparing for a long court battle.Musk alleged Friday that Twitter has failed to provide enough information about the number of fake accounts on its service. Twitter responded in a weekend letter disclosed Monday that his “purported termination is invalid and wrongful” and that the company has continued to pro

Jul 12, 2022
Looming Musk-Twitter legal battle hammers company shares
Economy

Banks' household loans grow for 3rd month in June on home-backed lending

A bank branch in Seoul / YonhapHousehold loans extended by banks in Korea grew for the third straight month in June as home-backed lending picked up due largely to loan demand for home rentals, central bank data showed Tuesday.Banks' outstanding household loans had come to 1,060.8 trillion won ($808.3 billion) as of end-June, up 300 billion won from a month earlier, according to the data from the Bank of Korea (BOK).It marked the third straight month of rises, but the amount grew at a slower pace than in May, when the corresponding figure rose 400 billion won.The BOK said banks' household loans increased last month as housing-related loan demand expanded despite rising borrowing costs.Banks' home-backed loans had grown 1.4 trillion won on-month to 789.1 trillion won as of end-June. The June rise accelerated from an 800 billion won on-month increase in May.Banks' unsecured and other non-mortgage loans, however, fell 1.2 trillion won to 270.4 trillion won last month due mainly to rising lending rates.Borrowing costs have been on the rise as the BOK has raised the policy rate in a bid t

Jul 12, 2022
Banks' household loans grow for 3rd month in June on home-backed lending
Economy

Money supply up for 2nd month in May on increased deposits

Bank of Korea / YonhapKorea's money supply grew for a second straight month in May on increased deposits amid rising interest rates, central bank data showed Tuesday.The country's M2, a key gauge of the money supply, stood at 3,696.9 trillion won ($2.82 trillion) on average in May, up 29.8 trillion won, or 0.8 percent, from the previous month, according to the preliminary data from the Bank of Korea (BOK).The money supply rose for the second straight month in May after posting the first contraction since September 2018 in March. The May rise also marked the largest on-month increase so far this year.M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments.The May increase mainly resulted from a rise in deposits amid rising interest rates in line with the BOK's monetary tightening.Time deposits expanded 21 trillion won on-month and demand deposits grew 7.4 trillion won in May, the data showed.In May, the BOK raised the policy rate by a quarter percentage point to 1.75 percent, the fifth increase in borrowing costs since A

Jul 12, 2022
Money supply up for 2nd month in May on increased deposits
Economy

Yoon says focus on protecting people's livelihoods from economic crisis

President Yoon Suk-yeol answers reporters' questions at the presidential building in Seoul, June 12. YonhapPresident Yoon Suk-yeol said Tuesday his focus is on protecting people's livelihoods from the economic crisis as he took questions from reporters a day after daily QA sessions were suspended due to a COVID-19 outbreak among the press corps.Yoon greeted reporters as he arrived for work by saying he had heard some of them had tested positive for COVID-19 and wanted them to work from home for their own safety and the safety of others in the building.Yoon shares his office building with the presidential press corps. After several reporters tested positive for COVID-19 over the weekend, the presidential office said Monday it was temporarily suspending daily doorstepping with the president and taking other steps to minimize contact between Yoon and reporters.The decision prompted speculation the presidential office had gone into crisis management mode as Yoon's unrefined impromptu remarks during the QA sessions have been blamed as one of the reasons for a steady decline in his approva

Jul 12, 2022
Yoon says focus on protecting people's livelihoods from economic crisis
Cryptocurrency

Minor exchanges feared to close down amid crypto market decline

The logo of Korea's dominant crypto exchange, Upbit, is seen in front of its headquarters in Seoul. YonhapBy Lee Min-hyungMinor cryptocurrency exchanges are feared to have to close down amid rapidly-cooling market sentiment here and abroad.The five largest cryptocurrency exchanges in Korea ― Upbit, Bithumb, Coinone, Korbit and Gopax ― account for more than 99 percent of the market. According to data from the Korea Financial Intelligence Unit, a total of 26 crypto exchanges _ including the top five _ were in operation here as of the end of June.But it remains questionable whether the minor exchanges will be able to survive this period of monetary tightening and falling crypto transactions.Even the major exchanges' transaction volume has been on a steep decline this year. Data from the five exchanges showed that their combined crypto transactions stood at around $260 billion in the second quarter of this year, down by more than 77 percent from a year earlier.The lukewarm performance is attributable to deteriorating asset market conditions here and abroad after the U.S. Federal Reserve

Jul 12, 2022By Lee Min-hyung
Minor exchanges feared to close down amid crypto market decline
Economy

Korea to focus on revamping corporate regulations

The finance ministry building in Sejong City / Korea Times fileThe finance ministry said Monday it plans to overhaul corporate regulations and revisit punishment that could excessively hamper business activities in an effort to support private sector-led economic growth.The government plans to focus all its policy resources on revamping regulations in a "swift and bold" manner, the Ministry of Economy and Finance said in a policy briefing to President Yoon Suk-yeol.The policy direction is in line with Yoon's election pledge to seek small government in a bid to help companies create more jobs and increase investments.To this end, the government said plans to launch a state-civilian task force in July to review corporate regulations and "aggressively" push for revamping core regulations until they are abolished.The ministry also said it will push to review punishment that could excessively weigh on corporate activities. The government plans to look at ways to impose fines or other administrative disciplines instead of heavier penalties for businesspeople.To improve fiscal health, the g

Jul 11, 2022
Korea to focus on revamping corporate regulations
Economy

New FSC chief vows efforts to stabilize financial market

Financial Services Commission Chairman Kim Joo-hyun gives a speech after being appointed to the position in a ceremony held at the Government Complex in Seoul, Monday. Yonhap Yoon appoints top financial regulator without assembly hearingBy Yoon Ja-youngNew Financial Services Commission (FSC) Chairman Kim Joo-hyun vowed to work on stabilizing the financial market, pointing out that it is difficult to estimate how current market uncertainties will unfold. “I wondered what the people currently expect of the Financial Services Commission. Stabilization of the financial market would come first,” he said in a speech upon his appointment to the position, Monday. His appointment to the top post was approved by President Yoon Suk-yeol on the same day without a National Assembly confirmation hearing. After nominating Kim to lead the FSC early last month, President Yoon had requested the National Assembly send him a report on the nominee's confirmation hearing, but the Nationa

Jul 11, 2022By Yoon Ja-young
New FSC chief vows efforts to stabilize financial market
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